Forex E

Crafting the Necessary Edge

Goldman — Tue, 28 Jun 2011 01:51:19 +0000

In the Foreign Exchange Market, there is a good reason that almost 90% of all investors fail to profit in the long-term. It all has to do with the edge you’re bringing to the table. In professional sports, an athlete will tell you that having an edge is important – more than an attitude but a beneficial factor that helps you stand out above your opponent, like a big lineman vs. a small linebacker.

The same holds true in Forex. If you can pair up a strong currency vs. a weak currency, or even a weak currency vs. a strong currency, you can find the edge necessary to profit. Of course, pairing currencies of equal value all but eliminates your edge, and this is the reason why a lot of investors fail. Playing any currency valued lower than its mate causes some to panic. It’s a risk they are not comfortable taking.

If you are looking to profit with Forex, then crafting an edge is something you should be doing every time you attempt to trade. An edge means you have a leg up on the competition, and any advantage at all can mean profit.

Explaining the Edge

Matching up a strong currency with a weak currency will help you gain a bit more confidence in knowing the likely direction of any move. If you can match that projected direction with the direction of a trend on a daily chart, you have a clear trading edge that you will help you profit in the market.

As an example: Take a look at one of the latest downtrends in the market, the USD/CHF pair. Using the strong vs. weak formula, we see that the USD is weak while the CHF is strong. To sell that pair in the same direction of the daily chart gives you a high probability trade.

In order to tell which currencies are weak and which are strong, you will need to pay attention to the charts. Use a 4-hour chart with a 200 SMA on it. You will be able to easily find the stronger currencies here. For instance, the EUR/USD pair – if the trading is above 200 SMA, this means the EUR is stronger. Make a note of that with all currency pairs—at least a dozen—and now you have a baseline for trading.

Next, match your strongest with the weakest and trade on the trend while you can. You can work both ways here. You can trade strong on the uptrend or weak on the downtrend. It’s up to you how to trade the pairs.

The important thing here is that you always bring that edge to the table. Take your time to find out the trends and to spot the strong and weak players. Never fall in love with one type of currency or any one pairing. Mix it up and allow the market to dictate your moves.

Keeping Your Emotions in Check

Goldman — Fri, 20 May 2011 02:58:35 +0000

With the Foreign Exchange Market enticing thousands of people to become investors every single day, we can easily see that Forex is rapidly expanding and turning some smart, diligent investors into wealthy people. But not every Forex investor is going to profit. In fact, only around 10% of all investors will profit, while the other 90% lick their wounds and count their losses.

Many people fail in the marketplace because they let their emotions get the better of them. They become attached to the idea of profiting and refuse to accept any loss whatsoever. Before they know it, they’ve lost all their capital and are too deep in the red to make smart decisions.

From that point, emotions continue to build and the panic sets in, causing poorly-timed, uneducated trades – a practice that results in even more money lost.

In this article, we will take a look at how to keep your emotions out of the marketplace completely. Approaching Forex like a robot helps investors separate wise decisions from those proverbial “gut feeling” decisions and will ultimately help your odds for success.

Losing Your Emotions in Trading

Step 1: Go Small

If you’re putting up the equivalent of your life savings, then you will never be able to detach yourself emotionally. Playing the market shouldn’t be something you go all in with nor should it be something you do with your last bit of money, like a desperation play. If you want to make smart, informed decisions and keep your emotions in check, invest small with money you can afford to invest.

Step 2: Suffer Losses, Don’t Chase Them

You are going to lose in some trades with Forex. The basic idea is that you’re trading with currencies in the hopes that you make a profit based on what your currency is worth. When you lose out on some money, do not chase it and double-down with the next set of trades. You must eat the losses and learn to move on. Change your strategy where necessary, but do not begin to throw more money in to come out on top.

Step 3: Work with Day Trading

With the day trading platform, you will be in and out with trades, completing them quickly and cycling through many every day. This is a great way for you to keep yourself emotionally detached from the trading. If you’re involved in any long-term or high-dollar trades, you will fret over the outcome too much and make poor choices.

These three tips are a great starting point to help you shut your emotions down when trading. Of course, you will never be able to turn them off completely, but the idea is to never let them impede your progress. A cold, calculate, shut-off approach is the money-making approach with Forex.

Reasons to Invest with Forex

Goldman — Tue, 03 May 2011 00:20:43 +0000

Some people are quick to tell you that money isn’t everything. Technically, that is true, but the odds are the person telling you that doesn’t have to worry about money too much. For the everyday person struggling with bills, dealing with legal issues for back taxes, and having to pay hospital bills, etc, money certainly is one of the most important things to them.

This is why millions of people work to supplement their incomes annually and seek out work-from-home opportunities. And with over two-trillion-dollars changing hands five days a week on the market, Forex is quickly becoming one of the most popular opportunities in the world.

There are many reasons people invest in Forex; and if you are looking for reasons to make the leap, here are just a few that may help you make up your mind.

Financial Freedom

Working from home, setting your own hours, spending time with your loved ones, and getting to live the life you have always wanted to live – this is the biggest possible draw for most individuals in any type of investment. With so much money involved in Forex, financial freedom is definitely at your fingertips. Of course, there is no guarantee that you will be successful in Forex. If that were the case, everyone on the planet would be an investor. But in terms of providing the opportunity to reach financial freedom, there is no broader avenue in the world today than the Foreign Exchange Market.

Little Startup Capital

Think about owning your own “business” for a moment. Even the smallest type of business you could ever hope to open, say a little corner store, would require a huge investment. You have to purchase or rent the property, purchase various types of insurance, buy the goods, market your business, pay employees, cover every single expense, and on and on it goes. With Forex, however, we are only talking about an average investment of $500. The difference in startup capital is astronomical.

Abundance of Information

To be successful at almost anything you are going to need the knowledge. To be a doctor, lawyer, police officer, architect, etc, you not only need to attend school for many years but also need on-the-job training for years. The Forex market works differently. It is easy to learn, operated by automated software in most instances, and classes are available via the web to help you understand the market and how to trade.

As stated previously, there is no guarantee that you will suddenly become wealthy and independent by using Forex. But in terms of every other work-from-home business opportunity available, investing in the Foreign Exchange is the easiest to learn, potentially the most rewarding, and the risk is very minimal in comparison to other avenues.